Sunday, April 22, 2012

News Links, April 23, 2012

## Global Ponzi meltdown/House of Cards ##Korean steel industry in deep trouble - POSCO
"POSCO said that Korea's steel industry is in deeper trouble than was previously realized.
"The country's largest steelmaker vowed to make amends in 2012 by pursuing austerity measures and slashing investments."

JFE posts massive loss for 2011-12 (Japan)
"World's No 5 steelmaker JFE Holdings Inc has posted net loss of JPY 36.63 billion in fiscal 2011, a reversal from a profit of JPY 58.61 billion a year ago, on valuation losses from overseas stock investments it was promoting as part of its growth strategy."

"In the last year, the nation's power problem has grown acute, with the gap between demand and supply jumping to 10.2 percent last month, from 7.7 percent a year earlier. In some states like Andhra Pradesh, where Nellore is, and in neighboring Tamil Nadu, blackouts have become so common that many factories report getting more electricity from diesel generators than they do from the power grid, at a cost that is roughly three times higher."

Cathay Pacific: May park planes, cut flights
"Cathay Pacific Airways warned that the airline may have to park aircraft and reduce flights if weakening demand and high fuel costs persist.
"The Hong Kong-based airline says that revenue growth in recent weeks has been falling 'well short of target' and failing to keep pace with capacity growth."

"Germany's biggest airline Lufthansa is planning drastic cuts in a bid to increase its annual yield from passenger flights by 900 million Euros, confirmed a spokesman on Saturday.
"Lufthansa will not buy any more planes for the next three years, will cancel some routes and do away with first class tickets on many long-haul flights according to a newspaper report."

"Alternative ways are being found for settling trade debts, including suitcases filled with cash, barter deals, and especially money transfers via banks in third-party countries such as Turkey, Armenia, Belarus and Azerbaijan."

The Sudans put China in a policy bind
"When one of your big oil suppliers splits into rival states, that's a problem for any country. When you're China, with its huge appetite for energy and a tradition of never wanting to take sides, it becomes a foreign policy migraine."